HUNTSVILLE, Ala. (WAAY) - The Obama Administration has announced new proposed regulations against predatory lending companies that aim to better protect military members and their families by amending portions of the 2006 Military Lending Act.
The proposed changes would reduce predatory lending practices, significantly expand the protections provided to service members, close loopholes in current rules, and help to ensure military families receive the important consumer protections they deserve.
The MLA caps the interest rate on covered loans to active duty service members at 36% but this new regulation would extend the types of loans that fall under that cap. The changes would provide protection against all forms of loans including vehicle title loans, payday loans, refund anticipation loans, open end lines of credit, and credit cards.
It also requires disclosures to alert service members to their rights and it prohibits creditors from requiring a service member to submit to arbitration in the event of a dispute, among many other protections.
The proposed regulation will be published in the Federal Register for public comment on Monday, September 29, 2014 and is on display todayhttp://www.ofr.gov/(S(stnraikvfefq3v2y11k3buzu))/inspection.aspx.
